When you have multiple contracts in multiple strike prices, the diversity decreases the liquidity of cash flow.
Here is how PC Jeweller DEC 380 CE looks like. It seems someone has bought the Call options but he will have tough time to find seller.
Most of the Indian option contracts are not liquid. So I found hard time when I was thinking to construct a delta hedged portfolio on this stock as mentioned in the section of live trades during post demonetization.
And here is how chart of NIFTY DEC 8100 PE looks like –
It has tons of buyers and sellers – in short, the market is highly liquid. NIFTY and Bank NIFTY are one of the most actively traded contracts.
Even some of the blue chip companies are not traded in options many times with higher volume. So the best way to find the most active options contracts head to the NSE site.
Click on “Live Market” on the menu and then head to the “Most Active Securities/Contracts” section.
You will hence have reached the “Most Active Securities” page. Look at the image here and click on “Most Active Contracts” as shown in the image.
Click on the dropdown as shown in the image under the “Most Active Contracts” section and select “Stock Options”
You will find the most traded blue chip companies worthy to write your options. You can keep them on your watch list now.